Paytm, the Indian digital payments startup, whose stock has fallen 71% since its launch in the November market, was further lowered its price target by Macquarie Capital Securities (India) Pvt. Analyst Joe was quick to predict the company’s market troubles.
Macquarie’s Suresh Ganapathy cut his price estimate from Rs 700 to Rs 450 ($5.90) from Rs 700, citing undervalued valuations of fintech companies globally. It did not change its earnings or revenue estimates for Paytm, which it underperforms. The stock rose to Rs 634.05 on Wednesday.
Paytm launched its largest ever initial public offering in India, but it has faced several challenges since then. Ganapathi cited fintech regulations and tighter compliance norms as potential headwinds – On Friday, the Reserve Bank of India barred the company’s Paytm Payments Bank venture from accepting new customers, adding pressure to the stock.
As per data compiled by Bloomberg, the 12-month average price target among nine analysts covering Paytm is Rs 1,203.
The initial public offering by Paytm’s parent company One97 Communications Ltd was touted by some as a symbol of India’s growing appeal as a destination for global capital, especially for investors looking for an alternative to China. .
Ahead of the listing, Macquarie analysts, including Ganpati, began coverage with an underperform rating and a price target of Rs 1,200. The IPO was priced at Rs 2,150.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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